The City of Lebanon Authority (COLA) has achieved a significant milestone with an A+ rating from Standard & Poor’s (S&P) for its refinanced bonds, which funded crucial upgrades to the wastewater treatment plant. This achievement underscores COLA's commitment to environmental protection and financial stability. The upgrades, completed in 2014, aimed to reduce nitrogen and phosphorous levels in effluent discharged into Quittapahilia Creek, as mandated by the Environmental Protection Agency. The project was financed through a combination of bond issues and bank loans totaling $45 million. S&P highlighted COLA’s mature local economy, stable customer base, and strong financial management practices as key factors in maintaining this high rating.
The wastewater treatment plant upgrades were critical to meeting federal mandates aimed at cleaning up the Chesapeake Bay. Tom Deitzler, COLA deputy director, reported that these improvements were necessary to comply with EPA regulations. The bonds, initially issued in 2019 to take advantage of lower interest rates, have been reviewed positively by S&P. According to Deitzler, S&P will conduct periodic reviews every four to five years as long as the bonds remain outstanding. The A+ rating reflects COLA’s revenue stability, driven by a reliable customer base, including residents of Lebanon city and nine neighboring municipalities.
Moreover, COLA is currently undertaking additional upgrades to the wastewater treatment plant, funded by a PennVEST loan worth $27.9 million. This low-interest loan offers more favorable terms compared to traditional financing methods. In addition, COLA has submitted two grant applications to the Susquehanna River Basin Commission for projects aimed at improving water infrastructure. One project involves purchasing advanced leak detection equipment to identify potential issues in older water mains, while the other seeks to increase water flow from Siegrist Dam to Mill Creek to support aquatic ecosystems.
These initiatives demonstrate COLA’s proactive approach to addressing both environmental and financial challenges. The authority continues to invest in modernizing its infrastructure while ensuring fiscal responsibility. The board recently approved payments for ongoing construction projects, further reinforcing its commitment to delivering quality services. With these efforts, COLA aims to enhance the quality of life for residents and protect vital natural resources in Lebanon County.
